#Dubai residential rents jump 27.2% in Q3

Dubai residential rents jump 27.2% in Q3

Dubai’s residential rents jumped 27.2 per cent in the third quarter of 2023 compared to the same period last year, and 2.1 per cent since the previous quarter.

Villa rentals rose 38.7 per cent annually but witnessed an insignificant change when compared to the previous quarter, ValuStrat’s Q3 report said.

Average annual rents for three-bedroom villas stood at Dh312,000, four-beds at Dh383,000, and five-bedroom villas at Dh492,000. Apartment asking rents grew 19.1 per cent YoY and 3.6 per cent QoQ. Average asking rents per annum for studio apartments were Dh51,000, for one-bedroom at Dh 75,000, two-bedroom at Dh111,000, and three-bedroom apartments were Dh170,000. Residential occupancy in Dubai was estimated at 88.9 per cent during the third quarter.

According to a CBRE Group report, average residential prices in Dubai rose by 19.6 per cent in the year to September 2023, where over this period, average apartment and villa prices increased by 19.7 per cent and 18.9 per cent, respectively. "Although demand remains relatively elevated, we continue to see further moderation in the rental market. The rate of rental growth has softened throughout the year, where in the year to September 2023, average residential rents in Dubai increased by 20.6 per cent, down from the 21.7 per cent growth registered a month earlier."

In terms of supply, in the year to date, 27,095 residential units are estimated to have been delivered, with 46.4 per cent of this supply being located in Meydan One, Downtown Dubai and Business Bay. A further 34,651 units are expected to be handed over the remainder of the year, the CBRE report said.